Dana Gas Sees Production But Also Receivables Rise in 2013

7 Feb 2014 Issue: 57 / 6

UAE-based independent Dana Gas saw production rise 8% in 2013. But whilst its operations in Egypt appear to be looking up, the firm is dogged by payment delays in the KRG and has launched arbitration (see p21).

Dana Gas reported an 8% increase in overall production across its KRG and Egypt asset base, reaching 64,700 barrels of oil equivalent per day (boe/d) in 2013, compared with 2012 levels of 59,800 boe/d. Production in 2013 was still 2.3% lower than the firm’s 2011 net production level. While KRG production remained mostly flat throughout 2013, in line with levels seen in 2012, the firm’s Egypt production was 19% higher in the fourth quarter of 2013 when compared with the first quarter of the same year – despite a 50% reduction in capital investment in Egypt in 2013.

Yet its position in Egypt is not entirely positive: its collection of receivables fell in 2013 to 78%, compared with 95% in 2012. Dana’s overall outstanding receivables for Egypt reached $274mn by the end of 2013. (CONTINUED - 690 WORDS)